Posted on: October 28, 2022, 11:36h.
Last updated on: October 28, 2022, 12:38h.
The Maryland Sports Wagering Application Review Commission (SWARC) is ready for the reveal. The commission is expected to formally issue online sports betting licenses to 10 qualifying applicants when it next meets on November 21.
During the November 2020 election, Marylanders amended their state constitution through a ballot referendum to permit gambling on sports both in-person and over the internet. Nearly two years later, the online sports betting component remains on hold.
SWARC has faced much criticism for its lengthy regulatory approach. The commission has spent months determining how to field online sportsbooks applications and distribute the concessions in a manner that adheres to equity stipulations. Those were mandated in the state’s sports betting bill signed by Gov. Larry Hogan (R) in May 2021.
The sports betting agency has since received legislative approval to expedite online wagering licenses. As a result, it’s become increasingly likely that the first legal online wager in the Old Line State will be facilitated by the end of the year.
The Maryland Joint Committee on Administrative, Executive, and Legislative Review allowed SWARC to avoid a time-consuming disparity analysis on the state gaming industry. That report was being conducted by an outside third party. SWARC will instead require licensed online sportsbook operators to “make a good faith effort” to promote inclusive hiring and maintain a diverse workforce.
Getting approval from the Maryland Lottery and Gaming Control Commission (MLGCC) is the first step applicants must complete before being approved for online sports betting operations. During this week’s MLGCC meeting, the agency found 10 applicants suitable for licensure.
They are Caesars Sportsbook, FanDuel, Betfred, BetMGM, DraftKings, Fanatics, Parx, Barstool Sportsbook, PointsBet, and BetRivers.
We’re pleased that we advanced the process today, but of course the work continues,” MLGCC Director John Martin said Thursday. “We’re also very happy to see such a varied group of businesses become part of this emerging market in Maryland.”
Those 10 entities are likely to be Maryland’s first legal online sportsbook operators. If SWARC issues licenses to the applicants during the November hearing, the final approval step will be for the MLGCC to review their operations during a test run. If successful, they can fully go live.
Maryland isn’t necessarily large in terms of land area. But it’s a densely populated state that’s home to more than 6.1 million people, which ranks it 19th in US population. Maryland’s residents are typically well off, as the median household income in the state is nearly $90K — which makes Maryland the highest-earning state in the nation.
Once fully operational with online operators up and running, gaming industry analysts believe Maryland oddsmakers will take upward of $4 billion in bets each year. Assuming a conservative 5% hold rate, that would equate to around $200 million in gross revenue each year.
With Maryland levying a 15% tax on retail and online sports betting, the state stands to collect $30 million a year from sports gambling.
Tax revenue from sports betting primarily goes toward the state’s Education Trust Fund. The fund supports early childhood education, public elementary and secondary education, and public school construction and capital improvement projects.
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